PG&E Corporation is proud of the recognition it regularly
receives from external organizations. In addition, our company
actively rewards and recognizes some of its most innovative
employees for promoting superior environmental techniques
and practices.

External Awards

PG&E Corporation's Utility Unit, Pacific Gas and Electric
Company, earned a number of awards in 2004 for continued
outstanding environmental and safety performance at all organizational
levels. Some examples include:

The California Climate Action Registry recognized
PG&E for demonstrating exemplary leadership in addressing
climate change in California, by honoring it with the Climate
Action Champion Award.

PG&E was honored with the Natural Gas Vehicle Achievement
Award for its employee education program. The award is sponsored
by the Clean Vehicle Education Foundation and the Natural
Gas Vehicle Coalition.

The National Arbor Day Foundation named PG&E a “Tree
Line USA Utility”—an honor the company has received
10 years running. The award recognizes the company’s
successful use of proper pruning techniques, worker training
and cooperation with local communities to promote “right
tree, right place’’ planting.

PG&E again received the National Hydro Aassociation's
(NHA’s) "Outstanding Stewards of America's Rivers" Award,
for out work on the of Rock Creek-Cresta and Mokelumne River
Projects.

PG&E received a number of awards for its efforts
in developing and administering customer energy efficiency
programs, including:

2004 Energy Star Award for Regional, State and
Community Leadership in Energy Efficiency 3rd year
in a row receiving this award.

PG&E received the 2004 American Institute of Architects
(AIA) Presidential Citation -- in recognition of PG&E’s
outstanding contributions to the architectural
profession with regard to building and lighting
design and efficiency standards.

PG&E was recognized as a one of two "Outstanding
Utility Partners" in EPA’s SF6
Emission Reduction Partnership at the 3rd
International Conference on SF6 and the Environment.

Internal Awards

PG&E encourages and recognizes employees who identify
and promote new environmentally superior techniques and practices,
and who strive to implement best practices and standards
as identified by third parties.

In 2004, the Richard A. Clarke Environmental Leadership
Awards were presented to an individual and a team whose actions
took the company beyond compliance and enhanced operational
performance, and did so in partnership with local, state,
and/or federal stakeholders.

Richard A. Clarke was Chairman and CEO of Pacific Gas and
Electric Company from 1986 to 1995. He led the company to
a new level of corporate environmental leadership at a time
when few corporations made environmental considerations a
high priority.

Diane Ross-Leech

Diane Ross-Leech, Manager of Species Protection in the
Utility’s
Environmental Affairs Department, is the originator and organizational
head of PG&E’s effort to develop multi-species
Habitat Conservation Plans that will allow PG&E to perform
the work necessary to provide reliable and cost-effective
service to our customers, and to do so in a way that minimizes
the impact on our natural environment. Species protection,
as envisioned by Diane, starts with the mastery of underlying
laws and regulations and recognizes the importance of both
understanding and working with parties affected by and concerned
about PG&E’s activities. Diane’s collaborative
and innovative approach to habitat and species protection
has positioned PG&E as a leader in the field of creative
species protection.

On Diane’s behalf, the company made a $5,000 contribution
to the Golden Gate Chapter of the Audubon Society.

Mokelumne Natural Resources Stewardship Team

Environmental leadership and compliance is a major focus
of the Utility’s hydroelectric team, and includes rigorous
public, regulatory, and nonprofit stakeholder partnership
efforts. In 2004, the Utility’s Mokelumne Natural
Resources Stewardship Team was honored with the Richard
A. Clarke Environmental Leadership Award for its success
in working with Mokelumne River stakeholders to reach an
agreement for operating and maintaining our Mokelumne River
hydroelectric system.

Key to the team’s success was their innovative approach
to working collaboratively with stakeholders to achieve environmental
and recreational benefits, along with reliable electricity
for Californians. The Mokelumne River Natural Resources Stewardship
agreement was ultimately approved as part of the Federal
Energy Regulatory Commission’s relicensing process
and received local and national recognition. For example,
PG&E was recognized by the National Hydropower Association
for outstanding environmental stewardship of the Mokelumne
River in 2003 and 2004.

On the team’s behalf, the company made a $5,000 contribution
to the Foothill Conservancy. The Foothill Conservancy will
use the funds to carry out stream restoration projects on
the upper Mokelumne River. This donation makes a significant
contribution to Foothill Conservancy’s efforts to
restore, protect, and sustain the natural and human environment
in Amador and Calaveras counties.